SALES, DEMOGRAPHIC AND USAGE DATA ESSENTIAL FACTS ABOUT THE COMPUTER AND VIDEO GAME INDUSTRY. [ iii ]



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2011 SALES, DEMOGRAPHIC AND USAGE DATA ESSENTIAL FACTS ABOUT THE COMPUTER AND VIDEO GAME INDUSTRY [ iii ]

It is critical that we support economic sectors that create jobs, develop innovative technologies and keep America competitive in the global marketplace. The video game industry is one of those important, high-tech economic drivers. Our industry generates over $25 billion in annual revenue, and directly and indirectly employs more than 120,000 people with an average salary for direct employees of $90,000. Michael D. Gallagher, president and CEO, Entertainment Software Association [ iv ]

WHO IS PLAYING 2 Who Plays Computer and Video Games? 3 Who Buys Computer and Video Games? 4 How Long Have Gamers Been Playing? AT PLAY 4 Who Plays Games Online? 4 What Type of Online Game is Played Most Often? 4 How Many Gamers Play on a Phone or Handheld Device? 5 Parents and Games 6 Do Parents Control What Their Kids Play? 7 Top Reasons Parents Play With Their Kids 8 What Were the Top-Selling Game Genres in 2010? 8 2010 Computer and Video Game Sales by Rating 9 What Were the Top-Selling Games of 2010? THE BOTTOM LINE 10 Sales Information 11 Total Consumer Spend on Games Industry 2010 WHO WE ARE 12 About the ESA 12 ESA Members OTHER RESOURCES 13 ESA Partners WHAT S INSIDE The 2011 Essential Facts About the Computer and Video Game Industry was released by the Entertainment Software Association (ESA) at E3 2011. The annual research was conducted by Ipsos MediaCT for the ESA. The study is the most in-depth and targeted survey of its kind, gathering data from almost 1,200 nationally representative households that have been identified as owning either or both a video game console or a personal computer used [ 1 ] to run entertainment software.

WHO IS PLAYING G A M E R D E M O G R A P H I C S WHO PLAYS COMPUTER AND VIDEO GAMES? 72% of American households play computer or video games The average game player age is: 37 29% 53% 18% AGE of Game Players 18% under 18 years 53% 18-49 years 29% 50+ years In 2011, 29% of gamers were over the age of 50 Being immersed in a video game, and having your brain stimulated, can encourage creative solutions and adaptations. These beneficial ideas and thoughts can then be applied to real life situations. The results can be surprisingly positive for individuals, communities, and society as a whole. Allen S. Weiss, M.D., president and CEO, NCH Healthcare System [ 2 ]

WHO IS PLAYING G A M E R D E M O G R A P H I C S 58% 42% GENDER of Game Players 58% male 42% female Women age 18 or older represent a significantly greater portion of the game-playing population (37%) than boys age 17 or younger (13%) WHO BUYS COMPUTER AND VIDEO GAMES? The average age of the most frequent game purchaser is: 41 Of the most frequent game purchasers, 52% are male and 48% are female There are games now for pretty much every age, every demographic. Jesse Schell, professor of entertainment technology at Carnegie Mellon University 33% of gamers say that playing computer or video games is their favorite entertainment activity Some of the top reasons why gamers purchase a computer or video game: quality of game graphics, an interesting storyline, a sequel to a favorite game, word of mouth [ 3 ]

AT PLAY H O W W E P L A Y 19% of most frequent game players pay to play online games TYPES OF ONLINE GAMES PLAYED MOST OFTEN: Other 8% Downloadable Games 13% Puzzle, Board Game, Game Show, Trivia, Card Games 47% 11% Persistent Multi-Player Universe 21% Action, Sports, Strategy, Role-Playing Gaming is productive. It produces positive emotion, stronger social relationships, a sense of accomplishment, and for players who are a part of a game community, a chance to build a sense of purpose. Jane McGonigal, PhD, author of Reality is Broken: Why Games Make Us Better and How They Can Change the World 55% of gamers play games on their phones or handheld device 65% of gamers play games with other gamers in person, an increase from 64% in 2010 and from 62% in 2009 How long have gamers been playing? 12 is the average number of years adult gamers have been playing computer or video games Among most frequent gamers, males average 13 years of game playing, females average 10 years [ 4 ]

AT PLAY P A R E N T S A N D G A M E S 91% of the time parents are present at the time games are purchased or rented 86% of the time children receive their parents permission before purchasing or renting a game Nine out of 10 parents pay attention to the content of the games their children play 80 70 60 50 40 30 20 10 0 Parents See Positive Impact of Playing Computer and Video Games 68% BELIEVE GAME PLAY PROVIDES MENTAL STIMULATION OR EDUCATION 57% BELIEVE GAME PLAY HELPS THE FAMILY SPEND TIME TOGETHER 54% BELIEVE GAME PLAY HELPS TO CONNECT WITH FRIENDS 59% of parents believe that computer and video games provide more physical activity now than five years ago Kids play video games for fun with the goal of progressing to the next level and eventually conquering the opponent, whether that s another player or the computer. What s more, the social aspect sharing tactics, experiences, and explanations helps cement what they ve learned. -James Paul Gee, author of What Video Games Have to Teach us About Learning and Literacy [ 5 ]

AT PLAY P A R E N T S A N D G A M E S Educational video games, handheld devices, and media production tools can allow young students to see how complex language and other symbol systems attach to the world. Michael Levine, executive director, The Joan Ganz Cooney Center at Sesame Workshop 98% of parents are confident in the accuracy of ESRB ratings 86% of parents are aware of the ESRB rating system DO PARENTS CONTROL WHAT THEIR KIDS PLAY? 75% of parents believe that the parental controls available in all new video game consoles are useful. Further, parents impose time usage limits on video games more than any other form of entertainment: 80% of parents place time limits on video game playing 74% of parents place time limits on Internet usage 70% of parents place time limits on television viewing 65% of parents place time limits on movie viewing [ 6 ]

AT PLAY P A R E N T S A N D G A M E S 45% of parents play computer and video games with their children at least weekly, an increase from 36% in 2007 TOP ➍ REASONS PARENTS PLAY WITH THEIR KIDS: ➊ Because they re asked to: 85% ➋ It s fun for the entire family: 84% ➌ It s a good opportunity to socialize with the child: 81% ➍ It s a good opportunity to monitor game content: 57% The U.S. entertainment software industry is at the forefront of innovation and education, turning what we have thought about video games on its head. Rep. Debbie Wasserman Schultz, (D-Fla), co-chair of the Congressional Caucus for Competitiveness in Entertainment Technology [ 7 ]

AT PLAY P A R E N T S T OAP N D S EGL AL ME RE S Best-Selling VIDEO GAME Super Genres by Units Sold, 2010 Casual 5.2% Strategy 3.8% 2.7% Other Games, Compilations 21.7% Action Sport Games 16.3% 7.5% Adventure 0.2% Arcade Shooter 15.9% 0.7% Children's Entertainment 9.1% Family Entertainment Role-Playing 7.7% 3% Fighting Racing 5.8% 0.4% Flight Source: The NPD Group/Retail Tracking Service 2010 Computer and Video Game Sales by Rating BY UNITS SOLD 44% EVERYONE (E) 12.3% EVERYONE 10+ (E10+) 19.5% TEEN (T) 24% MATURE (M) Source: The NPD Group/Retail Tracking Service Best-Selling COMPUTER GAME Super Genres by Units Sold, 2010 Shooter 9.7% Strategy 33.6% 0.9% Sport Games 1.5% Flight 0.9% Children's Entertainment 1.4% Other Games, Compilations 0.1% Arcade 20.3% Role-Playing 0.6% Racing 0.1% Family Entertainment Action 2.7% Adventure 8.7% 19.5% Casual Source: The NPD Group/Retail Tracking Service [ 8 ]

Rank Title Platform ESRB Rating 1 CALL OF DUTY: BLACK OPS 360, PS3, Wii, NDS Mature 2 MADDEN NFL 11 360, PS3, Wii, PS2, PSP Everyone 3 HALO: REACH 360 Mature 4 NEW SUPER MARIO BROS. WII Wii Everyone 5 RED DEAD REDEMPTION 360, PS3 Mature 6 WII FIT PLUS Wii Everyone 7 JUST DANCE 2 Wii Everyone 10+ 8 CALL OF DUTY: MODERN WARFARE 2 360, PS3 Mature 9 ASSASSIN'S CREED: BROTHERHOOD 360, PS3 Mature 10 NBA 2K11 360, PS3, Wii, PS2, PSP Everyone 11 BATTLEFIELD: BAD COMPANY 2 360, PS3 Mature 12 SUPER MARIO GALAXY 2 Wii Everyone 13 POKEMON SOULSILVER VERSION NDS Everyone 14 MARIO KART W/WHEEL Wii Everyone 15 JUST DANCE Wii Everyone 10+ 16 NEW SUPER MARIO BROS DS NDS Everyone 17 DONKEY KONG COUNTRY RETURNS Wii Everyone 18 WII SPORTS RESORT Wii Everyone 19 FALLOUT: NEW VEGAS 360, PS3 Mature 20 FINAL FANTASY XIII 360, PS3 Teen Source: The NPD Group/Retail Tracking Service AT PLAY T O P S E L L E R S TOP 20 VIDEO GAMES OF 2010 BY UNITS SOLD TOP 20 SELLING COMPUTER GAMES OF 2010 1 CALL OF DUTY: BLACK OPS 360, PS3, Wii, NDS Mature 2 MADDEN NFL 11 360, PS3, Wii, PS2, PSP Everyone 3 HALO: REACH BY UNITS SOLD 360 Mature 4 NEW SUPER MARIO BROS. WII Wii Everyone RANK 5 TITLE RED DEAD REDEMPTION 360, PS3 ESRB RATING Mature 16 Starcraft WII FIT PLUS II: Wings of Liberty Wii Teen Everyone 27 World JUST DANCE Of Warcraft: 2 Cataclysm Expansion Pack Wii Teen Everyone 10+ 38 The CALL Sims OF 3 DUTY: MODERN WARFARE 2 360, PS3 TeenMature 49 World ASSASSIN'S Of Warcraft: CREED: Wrath BROTHERHOOD of the Lich King Expansion 360, Pack PS3 TeenMature 510 Civilization NBA 2K11 V 360, PS3, Wii, PS2, PSP Everyone Everyone 10+ 611 World BATTLEFIELD: Of Warcraft: BAD Cataclysm COMPANY 2 Expansion Pack Collector's 360, PS3 Ed TeenMature 712 The SUPER Sims MARIO 3: Ambitions GALAXY Expansion 2 Pack Wii Teen Everyone 813 World POKEMON Of Warcraft: SOULSILVER Battle VERSION Chest NDS Teen Everyone 914 Call MARIO Of Duty: KART Black W/WHEEL Ops Wii Mature Everyone 10 15 The JUST Sims DANCE 3: High-End Loft Stuff Wii Teen Everyone 10+ 11 16 Battlefield: NEW SUPER Bad MARIO Company BROS 2 DS NDS Mature Everyone 12 17 The DONKEY Sims 3: KONG Late COUNTRY Night Expansion RETURNS Pack Wii Teen Everyone 13 18 World WII SPORTS Of Warcraft RESORT Wii Teen Everyone 14 19 The FALLOUT: Sims 2 NEW Double VEGAS Deluxe 360, PS3 TeenMature 15 20 The FINAL Sims FANTASY 3: World XIII Adventures Expansion Pack 360, PS3 Teen Teen 16 Starcraft II: Wings of Liberty Collector's Ed Teen 17 Mass Effect 2 Mature 18 World Of Warcraft: Burning Crusade Expansion Pack Teen 19 Fallout New Vegas Mature 20 Starcraft: Battle Chest Mature Source: The NPD Group/Retail Tracking Service [ 9 ]

AT PLAY S A L E S I N F O R M A T I O N U.S. Computer and Video Game DOLLAR Sales Growth DOLLARS IN BILLIONS 5.5 6.0 6.9 7.0 7.3 6.9 7.5 9.5 16 15.9 5.4 5.8 11.7.68.7 9.9 9.4 Combined Dollar Sales (shown for 2009 and 2010) Other Delivery Formats** Computer Games Video Games 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009* 2010* Source: The NPD 5.5 Group/Retail Tracking Service; Games Industry: Total Consumer Spend 4.8 16 15.9 * Figures include total consumer spend 3.7 2.6 ** Other delivery formats include subscriptions, digital full games, digital add-on content, mobile apps, social network gaming, and other physical delivery. 2000-2008 figures are sales of new physical content at retail exclusively. 1996 1998 1999 U.S. Computer and Video Game UNIT Sales Growth 1997 10 267.8 239.5 248.3 243.1 224.3 227.1 5 208.7 194.8 0 20 15 UNITS IN MILLIONS* 298.3 278.9 28.9 250 COMBINED DOLLAR SALES (shown for years 2009 and 2010) Video Games Computer Games Other Delivery Formats 257.2 24.6 232.5 Combined Computer and Video Game Unit Sales (shown for 2009 and 2010) Computer Games Video Games 16 15.9 2000 COMBINED 2001 2002 DOLLAR 2003SALES 2004(shown 2005for 2006 years 2007 20092008 and 2010) 2009 2010 5.4 5.8 Video Games Source: Computer The NPD Games Group/Retail Tracking Service; Games Industry: Total Consumer Spend 11.7 * Figures Other Delivery are sales Formats of new physical content at retail exclusively 9.5.68 9.9 9.4 6.9 7.0 7.3 7.5 6.9 [ 10 ] 5.5 6.0.7 2009 COMBINED COM VIDEO GAME U

THE BOTTOM LINE T O T A L C O N S U M E R S P E N D O N G A M E S I N D U S T R Y Total Consumer Spend on Games Industry 2010 DOLLARS IN BILLIONS Accessories $2.94 Hardware $6.29 $15.90 Content TOTAL: $25.1 BILLION Source: The NPD Group/Games Industry: Total Consumer Spend This growing industry has generated more than 120,000 jobs in over 34 states and is a major international player as well. It s time Congress took notice. Rep. Kevin Brady (R-TX), co-chair of the Congressional Caucus for Competitiveness in Entertainment Technology Recent Digital * and Physical Sales Information 20% 24% 80% 76% TOTAL DIGITAL FORMAT TOTAL PHYSICAL FORMAT 2009 2010 Source: The NPD Group/Games Industry: Total Consumer Spend Digital format sales include subscriptions, digital full games, digital add-on content, mobile apps and social network gaming [ 11 ]

THE BOTTOM WHO WE LINE ARE SALES INFORMATION ABOUT THE ENTERTAINMENT SOFTWARE ASSOCIATION The ESA is the U.S. association dedicated to serving the business and public affairs needs of companies publishing interactive games for video game consoles, handheld devices, personal computers, and the Internet. The ESA offers services to interactive entertainment software publishers including a global anti-piracy program, owning the E3 Expo, business and consumer research, federal and state government relations, First Amendment and intellectual property protection efforts. For more information about the ESA and its programs, please visit www.theesa.com. ESA Members as of May, 2011 345 GAMES www.spike.com/shows/deadliest-warrior-the-game 505 GAMES www.505games.com CAPCOM USA, INC. CRAVE ENTERTAINMENT DEEP SILVER INC. DISNEY INTERACTIVE STUDIOS, INC. EIDOS INTERACTIVE ELECTRONIC ARTS EPIC GAMES, INC. HER INTERACTIVE, INC. IGNITION ENTERTAINMENT, LTD. KONAMI DIGITAL ENTERTAINMENT AMERICA MICROSOFT CORPORATION NAMCO BANDAI GAMES AMERICA INC. NATSUME INC. NEXON AMERICA INC. NINTENDO OF AMERICA INC. NVIDIA CORPORATION O-GAMES, INC. PERFECT WORLD ENTERTAINMENT SEGA OF AMERICA, INC. SLANG SONY COMPUTER ENTERTAINMENT AMERICA SONY ONLINE ENTERTAINMENT, INC. SQUARE ENIX, INC. TAKE-TWO INTERACTIVE SOFTWARE, INC. TECMO KOEI AMERICA CORPORATION THQ, INC. TRION WORLD NETWORK, INC. UBISOFT ENTERTAINMENT, INC. WARNER BROS. INTERACTIVE ENTERTAINMENT INC. XSEED GAMES [ 12 ] www.capcom.com www.cravegames.com www.deepsilver.com www.disney.go.com/disneyinteractivestudios/ www.eidos.com www.ea.com www.epicgames.com www.herinteractive.com www.ignition-ent.com/us www.konami.com www.microsoft.com www.namcobandaigames.com www.natsume.com www.nexon.net www.nintendo.com www.nvidia.com http://usa.og-international.net www.perfectworld.com www.sega.com www.slang.vg www.us.playstation.com www.station.sony.com/en/ www.square-enix.com/na www.take2games.com www.tecmokoeiamerica.com www.thq.com www.trionworlds.com www.ubisoftgroup.com www.wbie.com www.xseedgames.com

OTHER RESOURCES E S A P A R T N E R S For more information on the ESA and its programs, please visit www.theesa.com ENTERTAINMENT SOFTWARE RATING BOARD (ESRB) WWW.ESRB.ORG The ESRB is a non-profit, self-regulatory body established in 1994 by the ESA. ESRB independently assigns computer and video game content ratings, enforces advertising guidelines, and helps ensure responsible online privacy practices for the interactive entertainment software industry. ACADEMY OF INTERACTIVE ARTS & SCIENCES (AIAS) WWW.INTERACTIVE.ORG The AIAS was founded in 1996 as a not-for-profit organization whose mission is to promote, advance and recognize common interests and outstanding achievements in the interactive arts and sciences. The Academy conducts its annual awards show, the Interactive Achievement Awards, to promote and acknowledge exceptional accomplishments in the field. To further enhance awareness of the Academy s vision, the organization created the D.I.C.E. (Design, Innovate, Communicate, Entertain) Summit in 2002, a once yearly conference dedicated to exploring approaches to the creative process and artistic expression as they uniquely apply to the development of interactive entertainment. With more than 24,000 members, including Electronic Arts, Microsoft, Sony, Nintendo, Ubisoft, THQ, Day One Studios, Epic Games and Insomniac Games, The Academy promotes the creativity and craftsmanship of video games worldwide. INTERNATIONAL GAME DEVELOPERS ASSOCIATION (IGDA) WWW.IGDA.ORG The IGDA is the largest non-profit membership organization serving individuals who create video games. IGDA advances the careers and enhances the lives of game developers by connecting members with their peers, promoting professional development, and advocating on issues that affect the developer community. These core activities advance games as a medium and game development as a profession. THE NPD GROUP, INC. WWW.NPD.COM The NPD Group is the leading provider of reliable and comprehensive consumer and retail information for a wide range of industries. Today, more than 1,800 manufacturers, retailers, and service companies rely on NPD to help them drive critical business decisions at the global, national, and local market levels. NPD helps our clients to identify new business opportunities and guide product development, marketing, sales, merchandising, and other functions. Information is available for the following industry sectors: automotive, beauty, commercial technology, consumer technology, entertainment, fashion, food and beverage, foodservice, home, office supplies, software, sports, toys, and wireless. VIDEO GAME VOTERS NETWORK (VGVN) WWW.VIDEOGAMEVOTERS.ORG The VGVN is a grassroots organization of voting-age gamers who organize and take action in support of computer and video games. Since its creation in 2006, more than 300,000 grassroots activists have joined the VGVN. [ 13 ]

www.theesa.com 2011 ENTERTAINMENT SOFTWARE ASSOCIATION [ ii ]